What must the government consider in its lease or purchase decision?

When making lease or purchase decisions, the government must thoroughly assess the acquisition cost of contractor property. This involves evaluating the total expenses involved in obtaining contractor property, including purchase prices, leasing fees, maintenance, operation, and potential resale values. Understanding these costs is essential for ensuring that the government makes a financially sound decision that aligns with budget constraints and strategic goals.

Considering the acquisition cost allows for a clear picture of the long-term financial implications of either leasing or purchasing. This could help determine which option might better serve the government's needs, balancing immediate expenses with future financial commitments.

While other factors, such as net purchase price, certain advantages of alternatives, and the length of equipment use, are important to the overall decision-making process, the acquisition cost of contractor property provides a foundational understanding that influences the viability of the options being considered. This comprehensive evaluation helps the government to fulfill its fiduciary responsibility by ensuring that resources are used efficiently and effectively.